Company

Petronet LNG Limited, one of the fastest
growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej,
Gujarat, and another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 15 MMTPA,
the Kochi terminal has a capacity of 5 MMTPA.

Natural Gas

Natural Gas consists mainly of Methane and small amounts of ethane, propane and butane. It is transported through pipelines but is extremely bulky. A high-pressure gas pipeline can transport in a day only about one-fifth of the energy that can be transported through an oil pipeline.

Terminals

The Company has set up South East Asia's first LNG Receiving and Regasification Terminal with an original nameplate capacity of 5 MMTPA at Dahej, Gujarat. The infrastructure was developed in the shortest possible time and at a benchmark cost. The capacity of the terminal has been expanded to 10 MMTPA and the same has been commissioned in June, 2009. The expansion involved construction of 2 additional LNG storage tanks and other vaporization facilities. The terminal is meeting around 20% of the total gas demand of the country.

CSR

Petronet LNG, as responsible Corporate/Community/Government Citizens, undertake Socio-Economic Development Programme
to supplement the efforts to meet priority needs of the community with the aim to help them become self-reliant.
These efforts would be generally around our work centres mostly in the areas of Education, Civil Infrastructure,
Healthcare, Sports & Culture, Entrepreneurship in the Community. Petronet LNG also support Water Management and
Disaster Relief in the country thereby help to bolster its image with key stakeholders.

Media Centre

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

Four of the top public sector companies of the country's Hydrocarbon Sector viz. Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited (GAIL) have invested in Petronet LNG. Each has a 12.5% equity share, leading to a total of 50% for the four.

The beleaguered Dabhol power plant in Maharashtra is set to start producing cheaper power from the second half of this year. An empowered group of ministers (eGoM) has allowed Petronet LNG to sell gas to Ratnagiri Gas and Power Pvt Ltd at $5.85 per million British thermal unit (mmBtu), translating into a generating cost of Rs 2.87 per kilo watt hour (kwh) from June this year.

At present,only one740Mw unit is functional at Dabhol. Power from the unit is sold at over Rs 5 per kwh, as the feedstock used is naphtha, which is more expensive than gas. "Of the three units (atDabhol), two units totalling 1,500 Mw will start operating on gas from April," Petroleum Secret:aJy MS Srinivasan said on the sidelines of an international energy conference.

Petronet LNG will sell gas to Ratnagiri Gas and Power Pvt Ltd at $5.85 mmBtu, translating into a generating cost of Rs 2.87 per kwh,from June this year of an international energy conference.Industry players, however, say April is too early a date as GAIL India's Uran-Dabhol feeder pipeline is likely to be ready only by May. Farmers along the route are opposing the pipeline, which has delayed its commissioning. The other pipeline from Petronet LNG's Dahej terminal to Uran is ready.

The cost of gas and power generation was arrived at after the eGoM allowed Petronet to pool the price of its cheaper Qatar LNG with expensive spot cargoes being imported for the power plant. Srinivasan said Petronet LNG would import 1.5 million tonne of liquefied natural gas per annum through 24 spot cargoestwo cargoes a month - for the Dabhol plant.

A senior government official said Petronet customers would have to pay $1.25 per mmBtu more under the poolingmechanism, so that the Dabhol plant could generate electricityatRs2.80per kwh. Petronet currently supplies 5 million tonnes of LNG bought from Qatar's RasGas at a delivered price of $4.60 per mmBtu.

The Qatar supplies, which began in 2004, are priced at $2.79 permmBtu, while the spot purchases are made in the range of $7-8 per mmBtu.